This article originally appeared on Kiplinger.com
“It’s all Greek to me.” Confusion and suspicion are two of the most common reasons people postpone talking to a financial professional. There’s an alphabet soup of products, programs, and certifications, and industry jargon like “asset allocation,” “decumulation,” and “equities and fixed income.”
“I suggest the first term someone needs to understand is ‘fiduciary,’” says Alexander Joyce, CEO and president of ReJoyce Financial LLC, a full-service retirement income planning firm in Carmel, Ind. “In plain English, fiduciary financial advisors are legally bound to put your needs before their own. Not all advisors are required to be fiduciaries. They could be working for corporate stockholders, not you.”
As a Charted Retirement Planning Counselor (CRPC), Joyce provides clients with a service that is often overlooked or delayed – comprehensive financial planning. The firm is built on the premise: Plan first, Invest later.
“Our goal is to help Indiana residents protect assets and create customized plans designed to make sure their retirement money lasts, and that it lasts longer,” explains Joyce.
The author of ReJoyce In Your Retirement: Everything You Need To Know To Get Everything You Want, and radio host of “The Retirement Halftime Show,” Joyce brings a tremendous wealth of knowledge and experience to the table. In addition to his CRPC designation, he is also a National Social Security Advisor, a professional with advanced education, knowledge and training in the Social Security program.
Getting Started Without the Anxiety
Putting new clients at ease is a ReJoyce trademark. Joyce invites people of any age with any size nest egg to come in and relax. They won’t hear stiff jargon, just simple discussions in a comfortable setting. He gets to know each client’s vision and dreams for what they want their assets to accomplish, and to begin the education process.
The firm’s clientele includes younger people who are starting their financial plan early – the best time to begin. But the majority are within a few years of retiring or are already retired.
“Before retirement, investors have time on their side. Compounding interest builds assets. But time can be an enemy in the last few years leading up to and into retirement,” explains Joyce. “Once you start making withdrawals, a big loss in the early years will be devastating, even if the market rebounds later. This is called the Sequence of Return risk.
“Two 65-year-old men, each with a $1m portfolio, both take annual disbursements of $50,000. Over the course of the next 25 years, both have an average return of 6%. But the one who experienced downturns in returns early in retirement ran out of assets by age 83. The one whose losses occurred in later years, had grown his assets to more than $2m at age 90.”
ReJoyce brings an entire team together to create portfolios that buffer investors from steep losses. The portfolios include guaranteed income products (a paycheck) as well as discretionary money (a playcheck). Portfolios are reviewed by the in-house CPA team to look for tax liabilities such as those that occur often when required distributions at age 70½ throw an investor into a higher tax bracket. Estate planners help clients get the proper documents that will ensure their legacy will be passed on as they wish. Insurers help clients protect themselves from risks such as steep medical bills and long-term care.
“You can’t retire on a pile of cash without a plan,” adds Joyce. “A thorough plan is your best opportunity to make sure you don’t outlive your money.”
Investment advisory services are available only through appropriately registered representatives of ReJoyce Wealth Management, LLC. Insurance and annuity products available through its affiliate, ReJoyce Financial.